New welfare reform guidance on rent payment and collection

CIH Scotland has published practical guidance for Scottish social landlords on rent payment and collection under Universal Credit. The main focus is on emerging options to support tenants to pay rent direct to their landlord.

The guidance, which was produced with financial support from the Scottish Government, follows CIH Scotland’s November 2012 guidance on preparing for the bedroom tax.

David Bookbinder, head of policy and public affairs, said:

“Whilst any significant roll out of Universal Credit appears to be some way off, in practice, direct payments are already with us. Tenants liable to pay the bedroom tax are effectively having to make a direct payment for the first time. This means that councils, housing associations and organisations involved in promoting financial capability can’t relax.

“Direct payments will bring challenges we haven’t dealt with for more than a generation. We have to do all we can to ensure that tenants have a reasonable range of payment options: bank accounts will be the answer for some but the evidence is that this isn’t the right option for everyone.

“New initiatives – often partnerships between social landlords and financial capability bodies – are emerging regularly. This guidance reflects the current position but, importantly, it will be updated on an ongoing basis via the Scottish Government’s Housing and Welfare Reform Knowledge Hub”.